Electrolux will charge MUSD 85 (MSEK 727) to earnings in the fourth quarter of 2021 after an appeals panel upheld a
As previously communicated,
The arbitration panel, appointed by the NAFTA Secretariat to rule on the matter, has now denied the appeal and upheld the original DOC decision. The 72.41% tariff rate was set by the DOC after Electrolux prior external counsel failed to timely file responses to requests for data. Electrolux will pursue appropriate legal action to recover the amount of the increased tariff rate and other costs from its prior counsel. Further, for comparison, the final rates since 2016-17 have been between 2% and 4%.
Electrolux believed that the DOC exceeded its discretion when it failed to accept Electrolux data. It should be noted that the disputed tariff only related to the 2016/2017 review period.
Electrolux has not previously made a provision related to this process. Although appealing administrative determinations is inherently challenging, Electrolux believed it had a strong case and that success was more likely than not. As further appeals of this type of arbitration ruling are rarely successful, Electrolux will pay the outstanding tariff plus accrued interest. Payment is expected to occur during 2022 and until then the amount is recognized as a current liability.
The expense of MUSD 85 (MSEK 727) will impact the operating profit of business area
This disclosure contains information that Electrolux is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on
For further information, please contact:
Sophie Arnius, Head of Investor Relations, +46 70 590 80 72
Paul Palmstedt, Corporate Communications, +46 70 593 92 83
Electrolux is a leading global appliance company that has shaped living for the better for more than 100 years. We reinvent taste, care and wellbeing experiences for millions of people, always striving to be at the forefront of sustainability in society through our solutions and operations. Under our brands, including Electrolux,
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